Petrol Prices Are Falling Fast

Further reductions in petrol and diesel prices in the UK are expected following the fastest drop already in 2024.

Around £4 is currently being saved by homeowners filling up family cars, and motorcycle riders are also reaping the benefits of the price drop. The RAC has confirmed a 7p drop in prices for a single litre of unleaded petrol. Last month the price per one litre of petrol was £1,42. But that’s now dropped to just over £1,36.

This marks the biggest reduction in price since December 2023, while Diesel prices have seen a similar drop with the price sitting at £1,48 in August before dropping to £1,41 per litre, currently.

“It’s really encouraging to see pump prices coming down so rapidly, which we know is as good for drivers’ wallets as it is for keeping the headline level of inflation in check,” said RAC’s lead spokesperson on fuel, Simon Williams.

“Of course, global oil prices and even the strength of the pound can fluctuate wildly, and that’s something completely out of drivers’ control. But with the cost of filling up making up a sizeable chunk of many households’ overall monthly spending, it makes sense to stretch every pound spent on fuel as far as possible.”

The RAC has also predicted that drivers/riders should expect further drops and that petrol could drop to 132p a litre, and diesel to 138p a litre, in the next fortnight alone. If that happens it would result in a three-year low for both fuels.

The RAC claims the reason for the fall was due to lower global demands for oil, which brought the price of a barrel down to $73 last week. The pound being stronger against the US dollar than previously, which is the currency oil is traded in, has also played a role.

Motorists were told to expect a fuel duty rise earlier this month as part of Labour party member Rachel Reeves’s budget speech next month, with the intent on addressing what it calls a £22bn hole in public finances. In March 2022 a 5p per litre fuel duty cut was implemented and Williams believes it’s costing the Treasury 2bn a year.

Williams added: “We’d normally be against any increase in duty, but we’ve long been saying drivers haven’t been benefiting from the current discount due to much higher than average retailer margins,” he said.

“As more and more EVs come on to the roads the government will need to tax drivers differently. We think replacing fuel duty with a pay-per-mile system as soon as possible is the way forward as then the only tax levied on fuel would be VAT.”

Find all the latest motorcycle news on Visordown.com.